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Is Your Business Ready For The “Great Resignation”?
The “great resignation” is coming and the people who stayed put during times of uncertainty are getting ready to jump ship.
The phrase “the great resignation” was coined by Anthony Klotz, a Texas A&M University Associate Management Professor in an interview with Bloomberg Businessweek. In the article, Mr. Klotz points out that over the past year employees have build “pent up resignation due to the realization that they can do their work from anywhere while keeping a healthy work-life balance.
A similar conclusion was found by Microsoft in a recent study where they found that 41% of global workforce would consider leaving their current employer within the next year due to being uncertain about stability after large disruptive events.
The study goes on to show that it’s time for employers everywhere should prepare for a huge influx of resignations. This means that company leadership needs to prepare their HR teams and set their production teams up for success with a new balance between freelancers and full-time employees.
What’s The Difference Between An Independent Contractor And A Full-Time Employee
Companies are seeing a seismic shift in how employees relate to the traditional employer-employee relationship. Many employers are going to feel a pinch in the production cycle as millions of knowledge workers realize they don’t need to be in a physical office to complete their job.
This revelation will lead high-skilled knowledge workers to seek for employment elsewhere, and this will cause a skill gap for thousands of companies around the world. As a result, more companies than ever before will look to contractors and freelancers to fill in the gaps left with the exodus full-time marketing employees.
If you’re currently feeling a little short staffed and don’t know which solution to go with, hiring a freelancer may be the perfect option for your business.
Freelancers are cost-effective in that they can work on an hourly basis or per task, and you should know when you need to hire a freelancer based on the project and your company goals.
But what if you need more than one person? Well, this is where things get tricky because it’s difficult to find time for two employees in addition to your daily tasks as their boss. If this sounds like something you’ve been dealing with, read on!
Why Your Company Needs To Hire Freelance Marketing Professionals
In today’s changing marketplace, a lean and agile company might be the difference between becoming successful or being forced to close. One of the fastest growing trends enabling companies to become more efficient is hiring freelancers instead of full-time employees.
Freelancing comes at its own set of pros and cons when you take time for research. If done correctly then there could be loads saved on money, time spent interviewing candidates who don’t work out as well as they thought they would–saving precious resource allocation
While some business owners prefer full-time employees because they offer reliability and loyalty, they overlook freelance professionals who provide everything regular employees do plus more.
Here are the pros and cons of hiring an independent contractor to help your business get ahead.
|Pros Of Hiring A Freelancer||Cons Of Hiring A Freelancer|
|Risk reduction for employer if freelancer doesn’t work out||Higher need for project management|
|Cost-effective in the long run||Must work to build company culture|
|Access to high-quality experts with specific skills||Freelancers can sometimes be unavailable|
|Global talent reach with minimal overhead|
|Ability to build long-lasting relationships with professionals|
As you can see, hiring a freelancer for your next project or to take the load off your full-time employees is mutually beneficial. By hiring a freelance instead of full-time employees, employers could save time and money while also allowing their business to grow leaner with an agile mindset that can be the difference between going under or booming.
How Are Full-Time Employees And Freelancers Different?
For many business owners, the choice between full-time employees and freelancers is a difficult one.
Both types of workers can provide similar services, but there are key differences that can help the business owner and the employee determine which employment status is mutually beneficial.
Freelancers and contract marketers offer the same level of skilled delivery while unloading many liabilities that companies carry with full-time employees. Let’s take a quick look at just a few of the ways a marketing contractor and marketing freelancer can provide the same level of professionalism that you’re used to while freeing up company resources.
1. Workers’ Compensation
As you decide between the two types of workers, it’s important to remember that how you compensate them is vastly different.
When it comes to salary negotiation, most high-quality freelancers set their own rates based on industry standards. As a result, you may find yourself paying a higher salary to a freelancer, but it’s only for a brief period.
On the other hand, you need to make sure your business has the capital to consistently sustain the salary and employee benefits for the foreseeable future.
So if you are looking for a specific skill set for a short-term project or need a graphic designer occasionally, a freelancer will help you meet your business goals.
2. Worker Flexibility
Full-time employees tend to complete work tasks during business hours. Therefore, it’s rare to frequent their home office during their off time to complete a project.
Freelance professionals offer flexibility that full-time employees do not. They can work whenever they want because they cannot dictate how a freelance worker gets their job done.
This means freelancers can complete projects on tight deadlines and lend a hand on one-off tasks or short-term assignments.
3. Longevity Of Employment
A freelancer offers a particular service at a negotiated rate for a time determined during the creation of the contract. After the job is complete, both parties can decide to sign another contract or part ways for the time being.
Full-time employees stay in their position for the long term and often have better job security and stability.
Both types of employment offer the possibility of building a solid working relationship between the worker and business owner. Freelancers may come and go as needed, while full-time employees stay on, regardless of whether you have worked for them.
While taxes vary from state to state, employers are responsible for their full-time employee’s taxes. This includes the exact amount of income tax owed before paychecks are issued.
Freelancers are considered self-employed, so they handle their self-employment tax and income tax. As a business owner, you would not withhold payroll taxes for freelancers, such as social security tax and Medicare tax.
Come tax time, you would just use form W-9 to complete IRS form 1099 to report wages paid to independent contractors. The freelancer, who is in complete financial control of their own business, will handle their tax obligations and business expenses.
5. Employee Benefits
Regular employees are entitled to benefits, like health insurance, sick days, and paid vacation time. This can be costly for business owners, especially those with small businesses or a startup.
Lack of a benefits package will be a deal breaker for many high-quality full-time employees. It will also increase overhead for business owners.
Freelancers are not entitled to employment benefits because they are self-employed. As independent contractors, they run their own business, meaning you do not have to offer them a benefits package.
While some larger companies offer freelancers benefit packages, they do not require vacation time, sick days, or paid maternity leave.
Independent contractors also are not eligible to receive medical insurance or a pension plan from your business.
Hire A Freelancer When The Time Is Right For Your Business
With the landscape of the workplace irreversibly changed, freelancers are the perfect solutions for one-and-done tasks, short-term projects, and work that doesn’t need to be done onsite.
As long as you follow proper worker classification protocol, there are more ways than ever before to find the right freelancer to grow your company.
The next time you find yourself with tasks that your company can outsource, try hiring a freelancer to pick up the slack and help you meet your business goals.
Freelancer vs. Full-Time Employee FAQ
Some signs that you need to hire a freelancer to help grow your business include the need for a specific skill set, creative block, and lack of expansion capital.
Freelancers are treated as a business, so employment law does not apply.